Key findings:
Renewed downturn in new work weighs on service sector output Fastest decline in export sales since February 2021 Business activity expectations slump to a two-and- a-half year lowComment:
Tim Moore, Economics Director at S&P Global Market Intelligence, said:
"UK service sector output slipped into contraction for the first time in one-and-a-half years as heightened business uncertainty weighed on order books during April. Export conditions were particularly weak, with new business from abroad falling to the greatest extent since February 2021.
"Survey respondents often commented on the impact of global financial market turbulence in the wake of US tariff announcements. Businesses in the technology and financial service sectors noted rising risk aversion and delayed spending decisions among clients, especially in relation to major investment plans. Consumer service providers meanwhile cited subdued domestic economic conditions and challenges with passing on rising payroll costs, especially those in the hospitality and leisure sectors.
"Input prices increased at the steepest pace since the summer of 2023 as higher National Living Wage rates and National Insurance contributions added to payroll costs in April. Prices charged inflation was also the strongest for nearly two years as service providers sought to pass on additional costs to clients despite fragile demand.
"Business expectations for the year ahead fell sharply as service sector firms braced for an extended period of global economic turbulence and heightened recession risks. Some 22% of the survey panel predict an outright decline in business activity during the next 12 months, up from 14% in March and well above the post-election low of 6% in July 2024."
This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( UK April final services PMI 49.0 vs 48.9 prelim )
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